Tony Abbott says he will abolish the $1.2B pay rise to 350,000 aged care workers – but will keep the money in the care system

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The Coalition says Labor’s Workforce Compact is too expensive and is designed to boost aged care union member numbers. The Compact requires employers to sign an enterprise agreement with employees that includes lifting employer funded wages by 3% above the minimum wage within two years before the Government tops up the wage. The Coalition says this would effectively see a care worker’s wage increase by 18.7% over four years, enrolled nurses 25% and registered nurses 29.9%. Tony Abbott says he wants the allocated $1.2B to be put back into the system so the sector maintain its viability and operators can allocate wage increases based on merit and affordability. He states Labor has taken $1.6B out of general aged care operations to fund its Wage Compact.
LASA CEO Patrick Reid and ACSA CEO John Kelly have both come out supporting the Coalition plan to have the funds returned to the general care pool.